US Dollar Drops to New Lows Despite Positive US Data

The US dollar declined to new lows today after the release of a raft of economic reports from the US economic docket. Today’s economic releases include the consumer confidence index, the house price index, the new homes sales report and the S&P/Case-Shiller US home price index.

The US dollar was weaker for most of today’s session as tracked by the US Dollar index, which was trading 99.05 for the better part of the day.

The US consumer confidence index released by the Conference Board came in at 120.3 versus the expected 122.5 and the previous figure of 124.9. The new home sales data released by the Census Bureau also exceeded expectations as it came in at 621,000 units as opposed to the expected 584,000 units. The S&P/Case-Shiller US home price index was recorded at 5.76%, which is an increase as compared to the previous 5.64%.

The US house price index for the month of February released by the Federal Housing Finance Agency also beat expectations as it was recorded at 0.8% versus the expected 0.4%. The positive data from the US economic docket did little to boost the weak US dollar even as US stocks soared higher and the Nasdaq rallied past the 6,000 mark.

It is highly likely that the future performance of the US dollar shall be directly linked to the performance of the US stock markets and bond yields as opposed to reacting to economic releases.

The EUR/USD was trading at 1.0943 as at 16:17 GMT having opened the day’s session trading at 1.0863. The GBP/USD was trading at 1.2835 having opened the day’s session trading at 1.2776.

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